Topic 2: Hong Kong’s relationship with the

mainland and its role in Asia-Pacific Rim

SUB-THEME 1 　 GROWTH AND DEVELOPMENT OF HONG KONG

Chapter　2 Development of Hong Kong into an International City

The Mainland Hong Kong Closer Economic Partnership Arrangement signed2003

Economic and Trade Offices established in Singapore and Sydney1995

The Asia-Pacific Economic Cooperation formed 1989

Economic and Trade Offices established in Tokyo1988

Economic and Trade Offices established in San Francisco1986

The Pacific Economic Cooperation Council formed1980

The Pacific Basin Economic Council formed1967

Period of drought1963-64

Korean War1950-53

Japanese occupied Hong Kong1941

EventEventYearYear

Time　Track

Hong　Kong’s　relationship　with　the　mainland　and　its　role　in　Asia-Pacific　Rim

Hong　Kong’s　relationship　with　the　mainland　and　its　role　in　Asia-Pacific　Rim

Mutual beneficial relations

　 Before 1941: The mainland as the largest market and supplier

　 1941–1945: Sharp drop in trade during the Japanese occupation

　 1950s–1970s: Reducing exports to China

　 Since the 1980s: Increasing imports and exports

Major　trading　partner

Flow of capital between Hong Kong and the mainland

From　the　mainland　to　Hong　Kong

The strong and reliable financial and legal infrastructures in Hong Kong have attracted a number of mainland corporations to invest in Hong Kong.

More and more Hong Kong industries moved to the mainland.Besides investment, Hong Kong provides technology and management skills for the mainland.

From　Hong　Kong　to　the　mainland

Hong　Kong’s　relationship　with　the　mainland　and　its　role　in　Asia-Pacific　Rim

Hong　Kong’s　relationship　with　the　mainland　and　its　role　in　Asia-Pacific　Rim

Hong Kong obtained water from Dongjiang ( 東江 ).

Helped the mainland raise money.

Signed the Mainland / Hong Kong Closer Economic Partnership. Arrangement (CEPA) 《內地與香港關於建立更緊密經貿關係的安排》

Mutual　support　between　Hong　Kong　and　the　mainland

Flow of capital between Hong Kong and the mainland

Hong　Kong’s　relationship　with　the　mainland　and　its　role　in　Asia-Pacific　Rim

Setting　up　of　departments

Regional　cooperation

Hong Kong Trade Development CouncilHong Kong Economic and Trade Offices

The Pacific Basin Economic CouncilThe Pacific Economic Cooperation CouncilThe Asia-Pacific Economic Cooperation

Active role in the promotion of trade

Acting as a financial centre

Acting as a management centre

• Many firms from all over the world set up regional headquarters in Hong Kong, for example, Jardine, Matheson and Company.

Hong　Kong’s　relationship　with　the　mainland　and　its　role　in　Asia-Pacific　Rim

Deposit-taking companies from over 40 nations72 Licensed banks16 Restricted licence banks 49 Local representative offices 92 Insurance companies from the Asia- Pacific Rim

The End